Theory of Constraints Handbook - James Cox Iii [767]
5A large bank of references of TOC success stories can be found at www.toc-goldratt.com.
6The exception to the rule are the holistic implementations of TOC within the U.S. Navy and Air Force maintenance centers (www.realization.com), some hospitals within the U.K.’s NHS (www.healthcaretoc.com), Japan’s Ministry of Land, Infrastructure and Transportation (MLIT) (www.afinitus.com/japanpw.html), and the TOC for Schools (www.tocforschools.com).
7Barnard’s four methods (Barnard, 2003) for breaking any conflict, focuses stakeholders mainly on identifying and challenging the conflict assumptions (rather than the traditional TOC approach that gets stakeholders to challenge all the logical assumptions related to a conflict). The conflict assumptions (Why D jeopardize C?, Why D’ jeopardize B?, Why D is in conflict with D’ and Why there is not another to satisfy B and C?) are the real reason why the conflict exists, and therefore, if challenged directly provide an efficient and effective way to break any conflict.
8Pilot Workshops #3 and #4 were facilitated by Professor Antoine van Gelder and Barry Urban who also have provided the ongoing support to the four cities after the kickoff workshops, with support of the waste experts Andrea Schultheis and Dieter Steinbach.
9Samples of the simulation games frequently used in these sessions can be downloaded from www.goldrattresearchlabs.com.
10Ray Immelman’s book, Great Boss, Dead Boss, explains the importance of tribal behavior in organizations.
11Large organizations such as Boeing and ABB have shown that it is possible to do a “bottom-up” implementation of TOC. Generally, these do take longer and need a committed and growing group of internal TOC experts and practitioners, supported by external TOC experts, and an effective communication mechanism to share internal results and lessons learned with the rest of the organization.
1PIMS is the acronym for Profit Impact of Market Strategies, a commercial database, originally developed for General Electric. The variables gathered included such items as market position, product quality, and capital investment. Studies were then conducted by many different researchers to determine the variables’ relationships to such outcomes as profitability and market share. Eventually, the PIMS database included data on several thousand businesses.
2For more information on the exercise of power in the strategy-making process, see for example, Bower and Doz (1979), Brandenburger and Nalebuff (1995), Guth and Macmillan (1986), Hamel, Doz, and Prahalad (1989), MacMillan (1978), Pettigrew (1977), and Sarrazin (1977–1978).
3The TOCICO Dictionary (Sullivan et al., 2007, 43–44) defines Strategy and Tactic tree (S&T) as—A logic diagram that includes all the entities and their relationships that are necessary and sufficient to achieve an organization’s goal. The purpose of the S&T tree is to surface and eliminate conflicts that are manifested through the misalignment of activities with organizational goals and objectives.
4Major measures for the Sales function relate to the amount of sales made; many times sales are made based on promises of short lead time. Production, on the other hand, is measured by efficiencies of resources, which translates into proper scheduling and large batches. Still another view is Finance which strives for low inventory levels which translates into few items stocked and little inventory of each item. The TOC logistics solution provides a win-win-win solution to these conflicts. DBR, for example, provides high utilization of the key resource, the constraint (satisfying production), rapid response to sales needs (short lead times and dependable service) and little investment in inventory (due to the responsiveness of DBR and the make-to-availability stocking option. The customer is the ultimate winner with this strategy.
5See the following Web site for examples of some generic S&T trees: https://www.toc-goldratt.com/store/product.php?productid=111121.